DUE TO SHAREHOLDER

6 Months Ended

Jul. 31, 2024

Related Party Transactions [Abstract]

DUE TO SHAREHOLDER

DUE TO SHAREHOLDER

The Company has a credit facility with its majority shareholder Vector Group Ltd., whereby, the credit facility provides the principal amount up to $800,000, as amended as of April 26, 2024, of financing to the Company for working capital purposes. Amounts outstanding under the credit facility accrue interest at an annual rate of 11% and mature in December 2027. As of July 31, 2024 and January 31, 2024, respectively, principal and interest outstanding under the credit facility totaled $1,214,260 and $1,138,201, including principal of $674,300 and $634,799, respectively, and accrued interest of $539,960 and $503,402, respectively. Interest expense related to the credit facility was $18,795 and $17,470 for the three months ended July 31, 2024 and 2023, respectively; and $36,559 and $33,934 for the six months ended July 31, 2024 and 2023, respectively.